Hess: BOTPE Annual Stockholders Meeting, May 1, 2014 -- NOT READY FOR PRIME TIME -- THIS WILL BE RE-POSTED AT A LATER DATE BUT IF YOU FOLLOW THE BAKKEN, THIS SHOULD BLOW YOU AWAY

A lot of this is "cryptic," done quickly; raw data. I will leave it up to the reader to connect the dots. It may be one of the best Bakken posts this week. I will re-post it later, with additional comments.

Slide 13, Hess presentation, 2014 Annual Meeting of Stockholders, May 7, 2014

From the slide:

• 640,000 net acres
• estimated recoverable resource: ~ 1.2 billion boe

BOTPE (back of the proverbial envelope):

• 1,200,000,000 boe / 640,000 acres = 1,875 boe / acre ?
• 1,280 acres x 1,875 boe / acre = 2.4 million boe -- just saying; or,
• 640 acres x 1,875 boe / acre - 1.2 million boe -- just saying....
• the "announced" EURs: 
• in general: 350,000 to 600,000 bbls
• CLR: 603,000 bbls
• EOG: trending toward 900,000 bbls
• Filloon, in the best Bakken: 1 million bbls

From the slide:

• 640,000 net acres
• > 3,000 total operated drilling locations

BOTPE:

• 640,000 / 3,200 locations = 200 acre-downspacing (compare this number with downspacing figures below the asterisks below)

From other operator presentations over the past two years:

• 1,280-acre spacing unit / 6 middle Bakken wells = ~ 200 acre-downspacing

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Downspacing? Look at some interesting cases from the June NDIC Hearing Dockets:

• 22551, CLR, Chimney Butte-Bakken, 16 wells on each existing 1280-acre unit within Zones I, II, III, IV and V; 32 wells on each 2560-acre unit in Zones VI, VII, VIII, IX, and X; Dunn
• 22564, Newfield, Sand Creek-Bakken, 8 wells on each of two 640-acre units; 8 wells on each of two 1280-acre units, McKenzie
• 22565, Newfield, Westberg-Bakken, 3 wells on one 640-acre unit; 8 wells on one 640-acre unit; 8 wells on each of three 1280-acre units; McKenzie
• 22586, Slawson, Clarks Creek-Bakken, 14 wells on an existing 640-acre unit; McKenzie
• 22588, CLR, Edge-Bakken, 14 wells on an existing 1280-acre unit, McKenzie

2560 / 32 = 80-acre spacing
640 / 8 = 80-acre spacing
1280 / 14 = 90-acre spacing
1280 / 16 = 80-acre spacing

There seems to be a trend.

Oh, I missed one. I am not making this up, unless I made a typo. But if there is no typo, look at case 22586, Slawson, privately held (deep pockets?) is looking to put 14 wells on a 650-acre unit:

640 / 14 = 45-acre spacing

These fields are some of the best, and they may not even be the best fields.

Oh, don't forget EOG:

Remember: in May, 2014, EOG requested permission to drill 32 wells on a single 640-acre section:

640 / 32 = 20-acre spacing

Compare this downspacing with the BOTPE figures for Hess up above (200-acre spacing).

I track the Westberg oil field here. Here are a couple of updates from the Westberg oil field:

July 12, 2013: Whiting with two huge wells:

• 22388, 4,956, Whiting, Skaar Federal 41-3-3H, Westberg, middle Bakken; Pioneer 74 Flex rig; gas averaged 276 through the lateral but spiked to 3,895 units and above; did not see completion data;  t6/13; cum 244K 4/14 @10,000 bbls per month oil.
• 22386, 4,456, Whiting, Skaar Federal 41-3-1H, Westberg, middle Bakken; Pioneer 74 Flex rig; gas averaged 484 throughout the lateral, but spikes of 7,000 units and above were noted; did not see completion data; t6/13; cum 213K 4/14; @13,000 bbls per month oil.

October 12, 2011: incredible Westberg well:

• 18691, 3,731, Newfield, Wisness Federal 152-96-4-2H  --- 35,849 bbls in first 25 days. Okay. Westberg field, Bakken. One section spacing. Middle Bakken at 10,573 feet.  26 stages. 2.2 million pounds of proppant;  no acid. s4/11; t7/11; cumulative 61,336 bbls in 53 days (less than 2 months); total depth 16,012 feet; fracked "on time." Sand only. I.N.C.R.E.D.I.B.L.E. Cumulative 287K 4/14 @ 4,000 bbls/month oil.

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409, Junior Brown and The Beach Boys